NEW YORK – Feb. 19, 2016 – The amount of time it takes to close a mortgage loan increased again last month.

The average time in January climbed to 50 total days, up four days since the “Know Before You Owe” mortgage disclosure rules took effect in October, according to a report released by Ellie Mae.

Over the past year, the average time to close on a loan has grown 10 days longer. In January 2015, the average time to close was 40 days, according to Ellie Mae.

The time to closing has also grown each month since the Truth in Lending (TRID) implementation on Oct. 3, 2015. It climbed from 46 days in October to 49 in November and December and 50 days in January.

Average closing times by type of loan in Jan.

  • Purchase loans: 51 days (up from 50 days month-to-month)
  • Refinance loans: 48 days (up from 47 days)
  • Federal Housing Administration loans: 51 days (up from 49 days)
  • Conventional loans: 49 days (same)
  • Department of Veteran Affairs loans: 53 days (up from 52 days)

Ellie Mae’s report also found that conventional purchase closing rates also reached a new high in January and rose above 73 percent for the first time since Ellie Mae began its tracking in August 2011.

In addition, the average FICO score declined last month, averaging 719 on closed loans (down from 722 in December). That is also the largest month-to-month drop in FICO scores since mid-2015, Ellie Mae notes.

Source: “The TRID Ripples: Time to Close Mortgage Loans Continues to Rise,” HousingWire (Feb. 17, 2016)

© Copyright 2016 INFORMATION, INC. Bethesda, MD (301) 215-4688

Related Topics: Mortgages

About Brian Heafy

After a 30 year career in the information technology/professional services industry Brian began his second career as a real estate professional in 2012.

Brian began his career in 1982 with the United States Marine Corps as a systems analyst providing software project management and implementation services to Marine Corps Aviation Logistics Squadrons in Iwakuni, Japan and later as a defense contractor assigned as lead technical program manager to the Navy Management Systems Support Office in San Diego.

Brian went on to serve as technology manager for the City of Coral Springs, then joined a publicly traded government (ERP) software and professional services provider in Lake Mary, Florida as VP of the company’s Public Safety & Justice Systems group where he and his teams supported over 450 small, medium and large Police, Fire, Courts and EMS agencies across the U.S. and Caribbean. Brian also served in technology management positions supporting commercial off the shelf software enterprise resource management systems finance and administration application software and public safety and justice systems application software projects for the City of Orlando and Orange County Clerk of Courts.

Brian’s in-depth understanding of governmental operations and contract management is a benefit to his real estate clients, so much of what gets accomplished in today’s real estate industry deals with understanding government databases, brokerage disclosures, banking and governmental regulations each with their own set of established procedures – at all levels of government (local, county, state, federal).

Brian holds a Bachelor’s degree in Business from Barry University. A Licensed Florida Real Estate Broker and member of the Greater Orlando Regional Realtors Association, member of the Marine Corps Association and former Web Sergeant for the United States Marine Corps League in Orlando, Florida. A native Floridian Brian and his wife Yoshiko have been married over 32 years and have two grown children.